Landlord Payment Direct

Existing Provision

Mandatory• Payments being made to landlord from

other state benefits• 8 weeks arrears

Discretionary• LA considers that the tenant will be

unable to manage their affairs• LA considers that the tenant is unlikely to

pay their rent

New Arrangements

• Reported as temporary provision pending decision about payment direct for Universal Credit

• Applies from 1st April for new tenants, otherwise the Anniversary (review) date

Discretion for LA to make payment direct to the landlord where they believe it will assist the customer in securing or retaining a tenancy.

For a tenancy to be secured or retained it is implicit that the rent should be affordable to the tenant.

Policy Intention

Support a negotiated reduction in rents for HB customers after April 2011 when changes to LHA rates take effect, in exchange for payment direct.

• removal of the five-bedroom LHA rate• introduction of absolute caps for LHA weekly rates• LHA rates to be set at the 30th percentile

In other cases, the new provision could encourage landlords to let at rent levels that HB tenants can afford or to open up a let to HB customers in the first place.

Policy Intention (cont)

• Level of rent must be affordable whilst in receipt of HB. If the customer continues to have a shortfall which they cannot meet the safeguard will not apply.

• Once direct payments are being made under the new safeguard, they will continue unless the rent becomes unaffordable.

• Normal payment direct rules still otherwise exist

Who can Apply

• Tenant or Landlord• Housing advice officers or Welfare advice organisation

• LA may suggest it to both the customer and the landlord.

• Tenant and landlord will generally be expected to

agree to direct payments.

• If the tenant is against direct payments, LA will decide if its seen to be in their best interests.

Evidence RequiredExisting Tenants (following end transitional)

• Evidence that rent has been reduced, generally to LHA level following LHA changes.

• Rent is reasonable and affordable based on tenant circumstances

• Tenant is in agreement or otherwise in their best interest.

New Tenants (from April 2011)• Evidence that rent has previously been charged at a

higher rate and has been reduced generally to LHA • Rent is reasonable and affordable based on tenants

circumstances• Tenant is in agreement of otherwise in their best

interest

Note: Not paid to landlord direct, as a matter of routine.

Next Step

• Safeguard Policy to be updated• Guidance note to be sent to all landlords• Tenants to be made aware of new changes• Housing Team to integrate as part of bond scheme

Enquiries to: landlordinfo@maidstone.gov.uk